Thrive Market, an online health and grocery marketplace, is removing all alcohol products to focus on nonalcoholic options. CEO Nick Green cites shifting consumer preferences and the rise of “Dry January.” Data shows a decline in alcohol consumption and a rise in nonalcoholic drinks sales. Thrive’s move aligns with these trends and its own data showing increased interest in nonalcoholic options.

Thrive Market’s decision reflects a broader trend of declining alcohol consumption in the U.S. Data shows a decrease in beer volumes and a shift towards nonalcoholic alternatives. The nonalcoholic drinks sector is growing rapidly, with sales projected to reach $5 billion by 2028. More brands like AB InBev, Molson Coors, and Heineken are entering the market.

Thrive Market’s move to go alcohol-free is supported by its own data showing increased searches for nonalcoholic options. The company, a CNBC Disruptor 50 company, has over 1.7 million paying members and generated over $700 million in sales last year. Thrive is betting on the growing demand for alcohol-free products among its customers, who typically purchase pantry staples in bulk.

Logistics also play a role in Thrive’s decision, as nonalcoholic beverages can be shipped to all U.S. states compared to alcohol products. CEO Nick Green sees the shift towards healthier alternatives as a key driver for the company’s focus on nonalcoholic options. Thrive aims to be a hub for innovation in the nonalcoholic drinks market and cater to health-conscious consumers.

Read more at CNBC: Online grocer Thrive Market goes dry, launches nonalcoholic products